# Partner's Distributive Share; Correction
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Final regulations; correction.
**SUMMARY:**
This document contains a correction to final regulations (TD 9398) that were published in the *Federal Register* on Monday, May 19, 2008 (73 FR 28699) providing rules for testing whether the economic effect of an allocation is substantial within the meaning of section 704(b) where partners are look-through entities or members of a consolidated group. The final regulations clarify the application of section 704(b) to partnerships the interests of which are owned by look-through entities and members of consolidated groups and, through an example, reiterate the effect of other provisions of the Internal Revenue Code on partnership allocations.
**DATES:**
This correction is effective *June 12, 2008,* and is applicable on May 19, 2008.
**FOR FURTHER INFORMATION CONTACT:**
Jonathan E. Cornwell and Kevin I. Babitz at (202) 622-3050 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations that are the subject of this document are under section 704 of the Internal Revenue Code.
**Need for Correction**
As published, final regulations (TD 9398) contain an error that may prove to be misleading and is in need of clarification.
**Correction of Publication**
Accordingly, the publication of the final regulations (TD 9398), which were the subject of FR Doc. E8-11176, is corrected as follows:
On page 28701, column 2, in the preamble, under the paragraph heading “ *B. The Baseline for Comparison in § 1.704-1(b)(2)(iii)* ”, line 2 from the bottom of the second paragraph, the language “and (2) and the conclusions reached by” is corrected to read “and ( *2* ) and the conclusions reached by”.
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration).